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Dollar pushes broadly higher after downbeat U.S. data

Published 03/13/2015, 10:21 AM
© Reuters.  Dollar rises sharply vs. rivals even as U.S. data disappoints
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Investing.com - The dollar pushed higher against a basket of other major currencies on Friday, even as data showed that U.S. producer prices fell unexpectedly in February and that consumer sentiment deteriorated this month.

The U.S. Department of Labor reported that producer prices fell 0.5% last month, confounding expectations for a 0.3% gain, after a 0.8% decline in January.

Core producer prices, which exclude food, energy and trade, also slipped 0.5% in February, compared to expectations for a 0.1% rise, after a 0.1% downtick the previous month.

Separately, the University of Michigan said that its consumer sentiment index fell to 91.2 this month from 95.4 in February, disappointing expectations for a rise to 95.5.

The University of Michigan also said that its inflation expectations for the next 12 months rose to 3.0% in March from 2.8% last month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.93% to 100.11

EUR/USD tumbled 1.14% to a fresh 12-year low of 1.0516.

The euro remained under pressure after the European Central Bank began purchasing securities on Monday as part of an asset-buying program amounting to €60 billion a month.

Concerns over the situation in Greece also weighed, as the eurogroup of finance ministers continued talks in Brussels to discuss a reform package put forward by Greece as part of its bailout review.

Greek Prime Minister Alexis Tsipras said on Thursday that the country will be able to fulfill its financial responsibilities, even if creditors don't a pay a tranche of aid.

The dollar was higher against the yen and the Swiss franc, with USD/JPY adding 0.14% to 121.46,while USD/CHF gained 0.77% to 1.0102.

Sterling pushed lower, with GBP/USD losing 1.10% to a four-and-a-half year low at 1.4718.

AUD/USD dropped 0.92% near six-year lows at 0.7637, while NZD/USD retreated 0.85% to 0.7327.

Elsewhere, USD/CAD advanced 0.77% to trade at a six-year high of 1.2782.

Statistics Canada reported that the number of employed people declined by 1,000 in February, compared to expectations for a 5,000 drop, after an increase of 35,400 the previous month.

The report also showed that Canada's unemployment rate rose to 6.8% last month from 6.6% in January, confounding expectations for an uptick to 6.7%.

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